(Bloomberg) -Fe gold struck a new highlight ever as the dollar pushed lower and traders seeking safety in the midst of President Donald Trump's tariff measures.
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Bullion increased as much as 1.4% to $ 2,798.59 per ounce, always surpassing its previous high set in October. A weaker dollar makes bullying more attractive to investors holding another currency as it is priced in the US currency.
The softness in the Greenback came after a widely anticipated rate cut by the European Central Bank and increased the latest data that showed gross domestic product modified by inflation in the US 2.3% annual in the fourth quarter after rising 3.1% in the Previous three from previous three- month period.
The precious metal has been trading in a small way since the US elections, with Trump's definite victory initially firing sales as investors flock to more dangerous assets associated with its pro-growth agenda. But he has clawed back in recent weeks, as the President's repeat threats on repressed tariffs in the summer.
“You have the uncertainty of what is going to happen with Trump, with its policies and tariffs and things like that could affect the growth of the United States,” said Phil, Chief Market Strategist at Blue Line Futures. “When you get inflation rising and get growth in decline, you get stagnation, then gold is one of the best performing goods in that environment.”
“I think that's what people have been located. There is a fresh strength, a fresh desire to be associated with that product, ”said OriBle.
Trump's policies are widely considered by economists as an inflation that fires and possibly hurt economic growth. Federal Fund Chairman Jerome Powell said on Wednesday that the US central bank was “waiting-and-see” in terms of the potential impact of the new administration's policies.
Powell and his peers at the Federal Open Market Committee were constantly holding interest rates at their first meeting of the year, adding that they will not rush to lower rates as they are waiting to see further increase on inflation.
Although Trump's plans are still unclear, he set a Saturday deadline for 25% tariffs on Mexico and Canada, and has also said that he intends to force levies across the board which is “much more” than ' r 2.5% previously suggested figure by Treasury Secretary Scott Bessent.